130th Issue of the IBS TIMES by Stock Yard

ISSUE - 130

2nd NOVEMBER [WEDNESDAY]

SYNOPSIS

- SWATI VERMA

After a long break, we are back...and with a bang! We begin the week on an optimistic note when all the things that you hear about are inflation, fear of another economic meltdown and the plummeting SENSEX. We bring to you the positive aspects that the Indian consumer has learnt to live with and which in turn is helping him to cruise with ease during such times. We bring you Consumerism at its best through the Cover Story this week. Panasonic– Japan‟s top consumer electronics maker is facing a tough time with the stronger yen ,falling sales and the after impacts of the natural calamities that struck Japan. With strategic decisions being made in terms of continuing the present of lines of business or not the company is striving to adjust to the new circumstances it faces. You can catch the writer‟s opinion on the same with Brand Track this week.

The Central Bank of India finally executed the long demanded plea of banks to deregulate the Saving Accounts Interest Rates thus providing them an opportunity to capture more customers. Though the move will not effect the small sized banks that much ,it could turn a little sour for the larger banks as most of their funds are in the form of Savings Account Deposits, further raising their Cost of Capital. Providing greater insights on this is the Focus of the Week. Moreover we have our regular sections of Fast Track, Quick Bites, Market Watch and a special dose of News @ IBS to give all of you a glimpse of the happenings last week on campus! Happy Reading! Cheers Swati Verma

COVER

1 OPINION 2 BRAND

5 FOCUS 6 NEWS @ IBS

8 9

FAST-TRACK

3 QUICK BITES

7 MARKET

EDITOR

THE IBS TIMES

COVER STORY– HOW SANGUINE A NATION

As for the four-wheeler fall, only a rise in two wheelers explains it. People have just switched over to more fuel efficient transport

the word of advice is the same old mantra – “Consumer is the King”. And it would indeed help a nation to prosper if its consumers were optimistic in their outlook

- POOJA DALAL

Food inflation increasing, diminishing four-wheeler sales, the falling Sensex, seriously paralysed governance and international instability; all these are headlines enough to depress the merriest soul in the country. But that doesn‟t seem to be the actual picture. We as a nation have always been optimistic, and this additional bit of news did not tarnish the festive fervour in any way. But the grim truth is that, just by being optimistic, you cannot beat the adversities. So what is it that is still keeping up our spirits and making us one of the most avid consumers in the world? Let us have a close look at an average middle-class Indian household. Less than 1% of them trade on secondary market, so a Sensex plunge does not pinch at all. Food inflation affects them the most but a close look tells us the tragedy is an international one, so it‟s forgivable. And in the face of higher purchasing power it eases even further. As for the four-wheeler fall, only a rise in two wheelers explains it. People have just switched over to more fuel efficient transport. As for bad governance, we don‟t talk about things we cannot help. International instability; who cares! And beyond the problems, is the real (and brighter) picture. India is the largest consumer of the yellow metal and most of it is for jewellery making purpose. If it were for the gloomy forecasts for the future, the demand for Gold should have surely gone down. The investment in infrastructure development is on a rise. And the increasing land prices mean everyone who owns a land is gaining. Insurance policy sales are up. Healthcare expenditure by families is increasing and that is well echoed in the rising prices of healthcare companies in India. Education enrollment numbers surge up every year and so do the loans sanctioned for similar purposes. Also as people in tier II and tier III cities show an inclination for a better life, the FMCG industry continues to grow at an increasing rate in India, even in the face of a global downtrend. The deregulation of interest rates comes as a harbinger of justice. Now everyone can have their money‟s worth. Though this will mean more volatility, but the thoroughly competitive banking landscape in the country means it will only be fair to the public. But as increased earning does not necessarily mean higher sales, there must be something more to the Indian consumption saga. As the current working population was born to a buzz-word -“Inflation”, most of them know well that ancient virtue called „savings‟ is no longer smart. They know that the value of money is most „NOW‟. And so spending it now is worth much more than spending it in future. This psych has led Indians to the ultimate consumerism. And it is this consumerism that is attracting most of the global investors to India, keeping the India Inc in the uptrend, and helping the overall economy grow, despite many global challenges and local issues. So the word of advice is the same old mantra –“Consumer is the King”. And it would indeed help a nation to prosper if its consumers were optimistic in their outlook. This advantage, a nation can build upon, with carefully driven policies. But one thing that is inherent is the numbers. India has the blessing (in disguise) of abundant and ever flourishing populace to support the growth of any industry (both in the form of affordable labour and the demand creator). All in all, we come back triumphantly proving the assumption we started with; „we as a nation are optimistic‟, and for good reasons. May the festive spirit continue and may we have more reasons to rejoice in the post-Diwali season.

1 2 3 4 5 6 7 8 9 10 11

FAST-TRACK NEWS

THE IBS TIMES - LISA.T.SAMUEL

Maruti Q2 profit falls 60%, to open new plant in Gujarat The country's largest car-maker Suzuki India today reported 59.81 per cent fall in net profit at Rs 240.44 crore for the quarter ended September 30, mainly due to production loss at Manesar because of labour unrest. The company's board, meanwhile, has approved to purchase land in Gujarat to set up manufacturing facilities. The company had posted a net profit of Rs 598.24 crore in the same period last year, Maruti Suzuki India (MSI) said in a statement.

Google effect: Motorola Mobility to cut 800 jobs Motorola Mobility Holdings Inc, the mobile-phone maker that agreed to be bought by Google Inc, expects to incur $31 million in costs as it cuts 800 jobs, according to a regulatory filing. The pre-tax costs include $27 million in severance and $4 million for closing facilities and will be recorded this quarter, Libertyville, Illinois-based Motorola Mobility said in a regulatory filing with the US Securities and Exchange Commission. The moves were approved Oct. 24, the company said.

Ind v/s Eng: England thump India by 6 wickets at Eden Gardens Kevin Pietersen smashed 53 off 39 balls as England finally found success on the Indian tour with a six-wicket victory in the lone Twenty20 international in Kolkata on Saturday. The tourists enhanced their reputation as the reigning world Twenty20 champions by keeping the hosts down to 120-9 before surpassing the modest target with eight balls to spare. England silenced some 40,000 fans at the Eden Gardens by ending the tour on a high after being blanked 50 by Mahender Singh Dhoni's India in the preceding one-day series.

India squander lead to draw against Pakistan in a heated match India squandered a three-goal lead to draw 3-3 against arch-rivals Pakistan in an ill-tempered match of the double leg tri-nation hockey tournament on Friday. Veteran drag-flicker Sohail Abbas struck twice for Pakistan in the 46th and 64th minutes while captain Shakeel Abbasi scored the equalizer a minute later after India had taken what seemed to be an unassailable 3-0 lead at the breather. For India, Tushar Khandkar, Danish Mujtaba and Rupinder Pal Singh scored in the violent-marred match which was stopped one minute and 35 seconds before the end of regulation time due to ugly incidents on the field involving players of both sides.

Advani in semifinals of World Billiards Championship Ace Indian cueist Pankaj Advani advanced to the semifinals of the World Billiards Championship after defeating compatriot Devendra Joshi by 279 points. Advani had an average of 31.25 in 32 visits while Joshi managed to score 721 points with an average of 22.53 in 1000 up match in the quarterfinal tie. During the match, Advani smashed four century breaks of 147, 135, 133 and 120 whereas Joshi managed to score 153 and 109 points break at the Northern Snooker Centre.

Kvitova beats Stosur in WTA Championships semifinal Czech left-hander Petra Kvitova stormed back from a set down to beat Samantha Stosur 5-7, 6-3, 6-3 in a topsy turvy first semifinals at the WTA Championships on Saturday and is now one win away from a dream end to a spectacular season. The 21-year-old Wimbledon champion, a debutant at the season-ending showpiece featuring the top eight women in the world after beginning the year ranked down in 34th spot, will face either Russia's Vera Zvonareva or Belarussian Victoria Azarenka in Sunday's final inside the Sinan Erdem Arena.

25% Ruleâ&#x20AC;&#x201C; The idea that a local government's long-term debt should not exceed 25% of its annual budget. Any debt beyond this threshold is considered excessive and a potential risk, since the municipality may have trouble paying the cost of debt.

1 2 3 4 5 6 7 8 9 10 11

THE IBS TIMES River spills into Bangkok, floods the Grand Palace The main river in Thailand's capital swelled to a record high on Friday, spilling over its banks and sending water rippling into the grounds of the Grand Palace, a primary historical monument of temples and gilded spires. The amount of water entering the palace grounds was small, but the breach was symbolically significant as Bangkok enters a crucial period when high tides to the south are pushing back at runoff from the north that has breached the city's outer defences and is now flooding some outlying districts.

feared

killed

suspension

bridge

collapse

Arunachal

At least 50 people were feared killed when a suspension bridge over the Kameng river collapsed at Seppa in East Kameng district of Arunachal Pradesh on Saturday evening. Superintendent of Police Kime Aya said the casulties occurred when villagers, who had set out to hunt, were crossing the bridge at around 5:30pm.The entire bridge collapsed with all those on it falling into the river, he said.He said two persons managed to swim to safety but around 50 others were feared dead.

India Japan to resume N-deal talks to develop rare earths Japan on Saturday agreed to resume civil nuclear negotiations with India that were stalled after the Fukushima disaste r an d a cc e lera te th e jo in t d evelop men t o f rare earth mate ria l de po sits. In a development that will be closely watched by China, external affairs minister SM Krishna, who concluded the fifth round of strategic dialogue with his Japanese counterpart Koichiro Gemba in Tokyo, said the India-JapanUnited States trilateral dialogue will be held soon.

Sahara's $5bn savings spat is India's loss: Report Sahara, the Indian savings house that sponsors its nation's cricket team, has been ordered to return a whopping $4.9 billion rose from nearly 30 million mostly rural investors. The episode is unlikely help confidence among small savers. Yet accessing their capital is vital to help India's development. In June this year the Securities Exchange Board of India (SEBI) ordered Sahara to return the cash as it had „mobilised huge public money in the guise of private placements‟ without adhering to the regulatory framework. That ruling has just been upheld by India's Securities Appellate Tribunal (SAT). Sahara argued that the bond issuance did not fall under SEBI's jurisdiction. They have said they will appeal to the Supreme Court and have stated that they are left "speechless and astonished" to see the verdict of SAT.

IBM names Ginni Rometty as first female CEO NEW YORK: International Business Machines Corp's Virginia „Ginni‟ Rometty has grown throughout her career by taking on challenges she's never faced before. Now she'll tackle something no one has ever done. Rometty, 54, will become the first female chief executive officer in IBM's 100-year history. The Armonk, New York based company said she will succeed Sam Palmisano in the role effective Jan 1. Palmisano, CEO since 2002, will remain chairman.

Rupee raises the most in 17 months; at 1-month high v/s dollar The rupee on Friday posted its biggest jump in the last 17 months by gaining 74 paise to close at a one-month high amid signs of fresh capital inflows after a deal to resolve the euro zone debt crisis that sparked an intense dollar selling here. Completing straight three-session of gaining string, the rupee settled at 48.76/77, up by 74 paise or 1.49 per cent, over its last close on October 25.

Food inflation rises further, at 11.43 percent A week after it breached double digits, India's food inflation continued with its upward climb and was recorded at 11.43 percent for the week ended Oct 15, official data showed Thursday. The rise was due to a jump in prices of pulses, milk and vegetables. Food inflation had crossed double digits in the previous week at 10.6 percent. The central bank has, however, said that it expects inflation to fall from December.

Eurobond- A bond issued in a currency other than the currency of the country or market in which it is issued. A eurodollar bond that is denominated in U.S. dollars and issued in Japan by an Australian company would be an example of a eurobond. The Australian company in this example could issue the eurodollar bond in any country other than the U.S.

1 2 3 4 5 6 7 8 9 10 11

THE IBS TIMES

OPINION FORUM– EUROPEAN DEAL – FOSTERING A NEW ERA

This move is important as it is expected to cut the burden of Greece to 120% of its GDP in 2020 or otherwise it would have risen to 180% of its GDP

- ANKIT SHARMA

The high level summits of European leaders has provided convincing counterattack against the festering debt crisis termed as the „Second great depression‟ by striking an emergency deal at Brussels which is comprehensive and can mitigate the rigour of the debt crisis which has threatened the financial stability of not just Europe but the entire global economy. An endless series of emergency meetings, each supposedly the last has generated a little more than just strategies that are obsolete almost as soon as they are made. The new package of measures to rescue the economy undertakes the following three elements. Firstly, with a renewed focus on Greece, political leaders persuaded private banks holding Greek debt to accept a write-off of 50% of their returns which is much more than 40% that the banks were willing to offer. This move is important as it is expected to cut the burden of Greece to 120% of its GDP in 2020 or otherwise it would have risen to 180% of its GDP. It was also believed to be the toughest chapter in the deal as it was hard to force the private investors to take a 50% loss on Greece‟s debt. Secondly, the corpus of the main euro bailout fund, the European Financial Stability Facility (EFSF) is being increased substantially from 440 billion euro to 1 trillion euro and the fund will be leveraged four to five times to enhance its fire power. This is meant to prevent the market panic from spreading to other countries, notably Italy. Thirdly, the European banks are to raise about 106 billion euro in the form of new capital by June 2012. This huge recapitalization will not only protect the banks against the losses caused by the government defaults but will also provide shield to the larger economies such as Spain and Italy from default. The deal also includes a proposal to tap china and other cash rich emerging economies to participate in bolstering the EFSF possibly through IMF (providing more voting rights).

The deal also includes a proposal to tap china and other cash rich emerging economies to participate in bolstering the EFSF possibly through IMF (providing more voting rights).

These were the crucial steps for tackling the debt crisis for which the European leader‟s efforts should be appreciated as they are the ones who have taken them up. Thus the deal aims to slice off 100 billion euro off the 350 billion euro debt pile hampering Greece. But the plan is no more than a politically determined collection of half measures as the zone leadership has attempted to tackle the crisis with hardly any new money being put on the table. Moreover, the bank recapitalization plan is expected to raise half of the fresh capital as required to cure the Europe banking woes, according to the private estimates. However the reduced debt burden of Greece till 2020 is difficult to be maintained by an economy which is subject to harsh austerity measures. Thus the success of the package is contingent on whether and to what extent, Greece and the Euro zone are able to convince the markets and influence its investors for the availability of the bailout funds through simpler structures!

Chastity Bond - A bond designed to prevent unwanted takeovers by having a maturity that is activated once a takeover is complete.

1 2 3 4 5 6 7 8 9 10 11

THE IBS TIMES

BRAND TRACK— PANASONIC-IS THIS THE BEGINNING TO ITS END..?

In 1927 he produced a bicycle lamp, the first product that was marketed under the brand name Nationa

The company is suspending two Japanese plants making TV displays, scrapping plans to relocate panel facilities to China and writing off some value of plants making TV displays and semiconductors

AVINASH ROY

Panasonic Corp, the maker of Viera televisions, forecasted its biggest annual loss in 10 years because of stronger yen, declining sales, the impact of the March 2011 earthquake, tsunami, and finally a onetime charge for restructuring its TV and chip operations. Panasonic recently posted a net loss of 136.15 billion yen ($2.12 billion) between April and September 2011 as sales declined and predicted a full year net loss, reversing an earlier projection for profit of 30 billion yen in the 12 months ending March 31, 2011 which includes a charge of 404 billion yen for streamlining the TV and semiconductor businesses, according to the statements. By just reading the above few lines about the company‟s current economic scenario can we conclude that the big electronic giant of today is heading towards its doomsday? I guess we need to dig in deep and find out what it actually signifies and I just hope this article serves the purpose. Panasonic was founded in 1918 by Konosuke Matsushita, who sold duplex lamp sockets earlier. In 1927 he produced a bicycle lamp, the first product that was marketed under the brand name National. It operated factories in Japan and other parts of Asia till the end of World War II, producing electrical components and appliances such as light fixtures, motors, and electric irons. After World War II, Panasonic regrouped and began to supply the post war boom in Japan with radios, appliances and bicycles. Konosuke‟s brother in law, Toshio Iue founded Sanyo as the subcontractor for components after World War II. Sanyo grew to become a competitor to Panasonic, but the rivalry settled down and Sanyo was soon a subsidiary of Panasonic in December 2009. Panasonic Electronics is Japan‟s top consumer electronics maker (larger than Sony) and by some measures it is Japan‟s one of the largest and the most famous companies. Based in Kadoma city, Osaka, it has hundreds of subsidiaries and has made products that have been sold under the names Matsushita, Panasonic, Technics, Quasar, phones, JVC and National. Panasonic starts with a desire to create things of value. Its products encompasses approximately all sorts of electrical-electronics equipments which one can think of which comprises of sockets, bicycle lamps, radio, refrigerator, tape recorder, air conditioner, radio, colour TV, oven, cd-dvd player, plasma TV and the most recent digital TV. Japan‟s biggest appliance manufacturer has recently announced to cut its annual TV sales target to 19 million from 25 million amid competition from South Korea‟s Samsung Electronics Co. and LG Electronics Inc. The yen reaching a post-war high against the dollar and a decade high against the euro is pressuring the company to accelerate plans to eliminate 17,000 jobs and focus on solar panels and rechargeable batteries after acquiring the Sanyo Electric Co. Panasonic is having a really hard time because the company has to work on two restructuring plans simultaneously, one is Sanyo and the other one being the downsizing of the TV department. Moreover, Panasonic announced a reform plan for its TV and chip operations. The company is suspending two Japanese plants making TV displays, scrapping plans to relocate panel facilities to China and writing off some value of plants making TV displays and semiconductors. The company will also reduce its production capacity for plasma TV panels approximately by 48%. Adding to it, after much speculation Panasonic confirmed that it has ceased the production of its „Technics‟ branded analogue turntables (DJ mix equipment) this autumn. After more than 35 years as a leading manufacturer of analogue turntables, it has regretfully taken the decision to leave this market. However, Panasonic will continue to sell headphones under the „Technics‟ brand. Though the recent actions of the company give a wrong signal and thus after having a detailed study we can conclude that all these moves are a part of the company‟s globalization efforts in line with its midterm management plan, as the same reason has been well supported and justified by the company officials. So it would be quite impatient to say that the company is on its way towards a downfall on the basis of the recent decisions, rather it seems that in the long run it is actually trying to adapt to the changing global economic scenario and in the meanwhile trying to cope up with the increased government‟s interference and preference towards solar energy industry.

1 2 3 4 5 6 7 8 9 10 11

THE IBS TIMES

QUICK BITES- NEWS THAT CAN’T BE MISSED !

- GAURAV MALLIK

Big Shots… IBM makes history by appointing Ginni Rometty as its first female CEO in its 100 years of origin. British Luxury Car Rolls –Royce appoints Herfried Hasenoehrl as the Head for business development of the Subcontinent that includes India, Sri Lanka and Bangladesh. Ashok Chawla has been appointed as the chairman of the watchdog organization CCI filling the position which was lying vacant for over four months. Finance Ministry takes swift action as it asks Nupur Mitra who was earlier the executive chairman of Indian Overseas Bank to take over the position of CMD of Dena Bank making first instance of the Finance Ministry coming into action.

Company Talks… Infosys looking for acquisitions in the Healthcare and Life Sciences sectors to increase its revenues up to 7 billion dollars. TVS group‟s „Wheels India‟ plans to foray into tractor/trailer and Ambulance air suspension Systems by tying up with leading Japanese steel manufacturer Topy Industries. Germany becomes 55 billion dollars richer after finding out an accounting error of the bad bank of Hypo Real Estate. Tata Group appoints Redifffusion to handle the Public Relations instead of Nira Radia‟s Vaishnavi. Mercedes Benz posts 40% growth from January – August 2011 producing 4890 units compared from 3495 units last year. Foreign Investors cut exposure to Tata and Ambani‟s groups while domestic investors increase their investments in these groups. E –Commerce market is expected to reach 50000 crore this year. Louis Phillipe eyes Rs 900 crore sales in Financial Year 2012. United Breweries to launch new wine brands in close to 3-4 months time. Diageo sets up a high –powered advisory group for India chaired by HDFC chairman Deepak Parekh and supported by M A Alagappan and Ashok Ganguly.

Economy Speaks… According to a research firm Macquarie - the estimated financial deficit of India in financial year 2012 would likely to be 8.6% of the GDP. Indian Firms got badly hit as China‟s social security plan pushes up cost. Labour Strike pulls Maruti Suzuki‟s profit by 60%. Kotak Mahindra Bank hikes interest rates on Savings Banks Accounts. GMR eyes at 5000 MW coal fired operating capacity in the time period of three years. India‟s gas demand to grow more than double to 473 mmscmd by 2017. ONGC requests for public hearing in the case of exploration on KG Basin. NMDC to bid for Russia‟s Vincy Coal in 2-3 days time. Orissa decides to renew Memorandum of Understanding with Posco and Okays deal with Korean Company to go for Paradip plant. NIIT Tech to invest 175 crore for the Noida campus expansion plan. Food Inflation soars to a six- month high of 11.43% for the week ended for October.

The Captains of the Ships... Former IPS Officer – Kiran Bedi Former Tata and Retail PR Agent – Nira Radia Sony CEO- Howard Stringer 2G Spectrum Case Suspect- Kanimozhi Investment Banker – Madhabi –Puri -Buch

1 2 3 4 5 6 7 8 9 10 11

FOCUS OF THE WEEK-

He studied hard (putting 200% effort due to his dyslexia) and got a law degree, but soon lost interest in it and joined management studies intuitively as he knew he was going to get into business.

Of his many achievements at Cisco, some stand out and make Chambers a rare leader.

Bull Spread-

THE IBS TIMES DEREGULATION OF SAVINGS ACCOUNTS INTERESTS RATES

- AKSHAY AGRAWAL

The Reserve Bank of India on 25th October 2011 announced (read surprised) the deregulation of the interest rate on savings bank deposits with immediate effect. In uncomplicated language (since this article is intended with the sole purpose of educating the reader and cultivating better investment decisions) a savings account is a hybrid product that provides the convenience of easy withdrawals, writing/collection of cheques and other payment facilities as well as an avenue for parking short-term funds which earn interest. Currently the household sector accounts for close to 85 per cent of all savings deposits in India‟s banks, and these deposits account for about 13 per cent of the savings in financial assets of households. This compares with a total of 55 per cent of household savings in financial assets held as deposits with the banking system. Term deposits (because of the higher return they offer) are obviously the more popular option. But 13 per cent of household savings is not a small amount. Given the substantial contribution of the household sector to aggregate savings, even this proportion makes savings deposits an important source of funds for banks, amounting to a staggering 22 per cent of all the bank deposits. The first point of view currently being advocated is that it would serve depositors well, since it would now allow them to earn a higher return on savings held in such deposits. The Second and the more critical argument is that the RBI‟s efforts to use increases in interest rates to moderate inflation has not worked because the transmission of increases in the Bank and/or Repo rates to the loan rates charged by banks is muted. Since banks have access to funds in the form of savings deposits on which the interest rate is fixed, the cost at which they obtain capital does not raise in proportion to the increase in the RBI‟s intervention rates. So, banks do raise interest rates on their loans, muting the effect of the policy on demand and inflation. There is reason to believe that it is the second argument that has influenced the RBI to resort to this move. Unwilling (and also incapable) to restrict credit flow because of the fear that it will affect growth too adversely, the central bank has decided to maximise the impact on demand, of the thirteen interest rate hikes it has announced in recent months! Regulation of deposit interest rates is by no means specific to India, but has been adopted in the past in most countries, and continues to prevail in many countries including China. If competition between banks to attract deposits raises the cost of funds, while banks are locked into loans charging interest rates that are not changeable till maturity, the interest rate spread gets squeezed leading to lower profits or losses. Banks tend to treat these as part of their core deposits, which determines how much they lend. But this is not the only danger. Even if banks don‟t face a profit squeeze, the rising cost of capital as a result of competition between banks to attract deposits, would force banks to find investment and lending avenues that offer higher rates of return. A likely outcome of interest rate liberalisation would be a decline of the share of public banks in savings deposits. In order to wean depositors away from public banks, private banks may hike interest rates on savings deposits, so as to increase their presence in the domestic market. Public sector banks would be forced to follow or lose a part of their business or both. This could damage the profitability of the public banks, which even now bear a disproportionate share of the social obligations imposed on the banking system.

An option strategy in which maximum profit is attained if the underlying security rises in price. Either calls or puts can

be used. The lower strike price is purchased and the higher strike price is sold. The options have the same expiration date.

1 2 3 4 5 6 7 8 9 10 11

THE IBS TIMES

NEWS @ IBSâ&#x20AC;&#x201C; ALL HAPPENINGS IN IBS HYDERABAD!

- KISLAY KUMAR

The week saw stress levels running high with two very important events occurring almost simultaneously; the soothing factor being the festival of lights falling right ahead. Here is a glimpse of the action happening on campus the past week . EXAMS@ IBS IBS Hyderabad had its end term examinations from the 10th of October to the 15th of October. It was a new experience for the 2013 batch. Writing examinations without any gap for five continuous days was a task that most of the juniors were not accustomed to and they still managed to do well.

PLACEMENTS The placement process for the 2013 batch began from the 16th of October. Companies like D.E.Shaw , J.P. Morgan Chase, E-clerx etc had visited the campus to hire future managers. Few of the Students were also offered PPOâ&#x20AC;&#x;s from J.P.M.C. The highest package till now is in the range of 10 lacs, though details are yet to be confirmed so far close to 75 students have been placed in the first two weeks of placements. For the Summer Internship Program companies like CRISIL and J.P. Morgan Chase had also visited the campus and hired students for the three month internship program.

DIWALI CELEBRATIONS The auspicious occasion of Diwali that marks the end of 14 year exile of lord Rama, his wife Sita and his brother Lakshman was celebrated with great vigour on the campus. Even though most of the students had left for home after their end term examinations, some students were still in the campus for placements and they celebrated Diwali in the campus itself. The Celebrations began with the worship of Lord Ganesha and Goddess Lakshmi after the Aarti, the focus shifted to burning crackers and merrymaking. Students celebrated Diwali with great fervor and enthusiasm as it would be the last on campus Diwali for the 2012 batch.

1 2 3 4 5 6 7 8 9 10 11

THE IBS TIMES MARKET WATCH

- KRITIKA SETHI

World markets felt a sigh of relief post the European summit. The investors are looking forward for the investments due to measures announced by European leaders regarding dilution of impact of Greece crisis on the other nations. RBI announced the hike in interest rates by 25 basis points. In order to tame intolerably and ever increasing levels of inflation, RBI has cumulatively increased rates by 525 basis points. But this time, it has been signaled by RBI that it is the last measure of monetary tightening cycle. GDP also revised to 7.6% for the current fiscal. Keeping up the festive mood of Diwali, the vigour was visible across almost all the sectors. The week ended on green note except for consumer durables which were down by 1.1%. The top gainers were metal which were up by 9.4% and realty up by 8.5%.

The Movers & Shakers of the Week

SURGES

%Change

DOWNFALLS

%Change

IVRCL ASHOK LEYLAND

14.7 14.5

UNION BANK INDIAN BANK

11.9 10.7

JSW STEEL

14.1

INDIA BULLS FIN. 7.7

ITC declared results for the quarter ended September 30, 2011. The company's sales grew by 17.5%YOY. This was mainly on account of good performance form the FMCG (Fast Moving Consumer Goods) segment. Among FMCG, cigarettes grew by 16.4% YoY. The hotel business on the other side reported a dismal 1% growth YoY. Operating margins were maintained around 36% levels for the quarter and around 35% for the half year period. Net profits grew by around 21% YoY. Telecom Company Idea Cellular reported numbers for the second quarter of the financial year 2011-12. The revenues grew by 26.1% YoY led by a good growth in total subscriber base along with the minutes of usage. Colgate is planning an investment of Rs 2 billion in the state of Gujarat. The company intends to set up a new production facility in an industrial estate in Sanand (near Ahmedabad). It may be noted that this estate is run by the Gujarat government's Gujarat Industrial Development Corporation. Global Cues: This week witnessed rising markets nearing almost 3 months high due to indications from RBI about the end of monetary

tightening cycle. Moreover, global investor mood uplifted due to European Union deal. Hong Kong markets were highest among all by 11% followed by brazil and Singapore. UK and US markets are still lacking behind.

18000 17804.8

17800 17600

S E N S E X

17400

12200 11913.62

17254.86

17200

12231.11

17288.83

12000

11869.04

11800

17000 16800

12400

12208.55

16939.28

11706.62

11600

16600

11400

16400

11200

16200 16000

11000

24-Oct-11

25-Oct-11

26-Oct-11

27-Oct-11

28-Oct-11

1 2 3 4 5 6 7 8 9 10 11

D J I A

THE IBS TIMES MARKET WATCH 24 OCTOBER 2011

25 OCTOBER 2011

26 OCTOBER 2011

27 OCTOBER 2011

28 OCTOBER 2011

Sensex

16939.28

17254.86

17288.83

17804.80

Nifty

5098.35

5191.60

5201.60

5360.70

DJIA

11913.62

11706.62

11869.04

12208.55

12231.11

HangSeng

18771.82

18968.54

19066.54

19688.70

20019.24

FTSE100

5548.06

5525.54

5553.24

5713.24

5702.24

Gold ($/oz.)

1655.60

1712.60

1722.90

1741.90

1743.40

Crude($/bl)

109.11

109.47

108.83

10.09

INR v/s USD

49.12

50.18

49.98

49.94

49.54

INR v/s EURO

69.30

69.67

69.55

69.45

69.55

Earnings Multiplier - An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used to discount future earnings, and allows investors to compare expected growth to an amount of money invested over the same period at current rates.

BUSINESS JARGONS BY – SWATI VERMA

http://bit.ly/ibstimesgooglegroup http://bit.ly/ibstimesyahoogroup

DisclaimerThis newsletter is just a compilation of news from various sources. Thus, readers are expected to cross-check the facts before relying upon them. Though much care has been taken to present the facts without error, still if errors creep in, necessary feed back will be always welcomed. Editors will not be responsible for any undertakings. The newsletter is not meant for sale and hence, no part of the newsletter should be used without the prior permission of the editorial team.

SourcesThe Economics Times, The Hindu Business Line, Times of India, Business Standard, Financial Ex-press, Financial Times, Business Week, Business World, The Economist, Wall Street Journal, Bloomberg, Reuters, Moneycontrol.com, Vccircle.com, yahoofinance.com, Business Today, India Today, Investopedia.com, Wikipedia.com, DNA, The Deccan Chronicle, The Hindu, The Tele-graph.

EDITORIAL TEAMAKSHAY AGRAWAL, ANKIT SHARMA, AVINASH ROY, AVLEEN KAUR, GAURAV MALIK, KRITIKA SETHI, LISA.T.SAMUEL, POOJA DALAL, SWATI VERMA.

1 2 3 4 5 6 7 8 9 10 11